RI to raise objections to US regulation on biodiesel standards

Jakarta (ANTARA News) - Indonesia is preparing to file its objections to a United States` plan to issue a regulation on biodiesel standards which among other things disqualifies biodiesel made from palm oil as a renewable fuel, a minister said.

"We will convey our dissenting arguments on February 27 in accordance with the deadline for the filing of objections. We have already met business asociations to formulate our arguments regarding the US policy," Trade Minister Gita Wiyawan said here Wednesday.

Meanwhile, Deddy Saleh, director general of foreign trade at the trade ministry, said the government would also look at the possibility of palm oil being discrinated against in the US regulation on renewable fuel standards.

"We will provide scientific proof and include it in our dissenting arguments to show they are wrong and that biodiesel from other vegetable oils is not different from palm oil-based biodiesel," he said.

Trade Minister Gita Wiryawan said the government objected to the US regulation`s stipulation on palm oil-based biodiesel because it could affect the country`s crude palm oil exports to the US and other countries.

Earlier, the United States Environtmental Protection Agency (EPA) had stated biodiesel made from palm oil did not meet the criteria of a renewable fuel as it had a high greenhouse emission rate.

According to EPA, palm oil-based biodiesel had the capacity of reducing greenhouse gas emmission by only 17 percent whereas based on the national standards in the US, biodiesel must result in a 20 percent cut in greenhouse gas emissions. The EPA`s ruling has caused companies in the US to stop making biodiesel from palm oil. (*)